POL00460656
POL00460656
Message
From: Mark Underwood: =EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=805C109119D343EB8095DAE62DBDC602-MARK UNDERW]
Sent: 04/12/2020 17:26:26
To: Declan Salter [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=b95ab9ea56cb437e9f5ca6c8a900cf3e-Declan Salt]
ce: Anita Turner [/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=786ef4c7fe914f1a826130cd072be032-Anita Turne]; Kevin Hutchinson
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=f78e8324e018467ebc969052e 1efaf68-Kevin Hutch]; Rodric Williams
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF 23SPDLT)/cn=Recipients/cn=a59054625a3146ffb39 1c2d83db6a9fd-Rodric Will]; Dean Maisey
[/o=ExchangeLabs/ou=Exchange Administrative Group
(FYDIBOHF23SPDLT)/cn=Recipients/cn=847d7c78876c4f87aa2ec64656034fe1-Dean Maisey]
Subject: Confidential - Contains Legal Advice: Draft response to the questions posed by the Inquiry on “Branch Suspense
Accounts and Trading Statements”
Attachments: 1. 201129 Inquiry Response - Branch Suspense Accounts and Trading Statements DRAFT V0.2 for DS Review.docx;
Disclosure of Suspense Account Reports; 3. Historical Suspense account review report 04122020.pdf; 2. Current
Suspense Account Review report 04122020.pdf; 4. POL-0171229.pdf; 5. POL-0007501.pdf; 6. Branch support guides
and Cover Letter - Oct 2019 FINAL.pdf; 7. Operational Training Guide V1.0 Oct 2020 RE.zip; 8.Comparison to Draft
KPMG Reports.zip; Disclosure of Suspense Account Reports
Importance: High
Private & Confidential
Hi Declan,
Please find attached a draft response to the questions posed by the Inquiry on “Branch Suspense Accounts and Trading
Statements”.
As discussed over the course of the week and subsequent to gaining approval from the Board, the intention is to answer
the narrow questions asked by the Inquiry but to also provide the KPMG reports in full. My view is that the KPMG
reports cannot be sent to the Inquiry without being contextualised. I believe the best way to contextualise the KPMG
reports and provide the additional information KPMG obtained when bottoming out questions I had on the draft reports
is to provide a covering note which i) introduces the KPMG reports; and ii) and provides the answers to the narrow
question posed by the Inquiry. The attached “1, 201129 Inquiry Response — Branch Suspense Accounts and Trading
Statements ..” seeks to achieve this.
In terms of the narrow questions posed by the Inquiry, I have purposely kept the answers short by referring to the
underlying documentation as I do not want to risk cutting across any Fraser J findings. For ease, and in addition to the
KPMG reports, I have also attached the documentation referred to in the answers. These documents are set out below:
Final KPMG Current Operation of Suspense Account Report (password:
Final KPMG Historical Operation of Suspense Account Report (password:
Balancing with Horizon document (POL-0171229.pdf).
Debt Recovery Processes under Branch Trading document (POL-0007501).
Branch Support Issue Guide.
Operational Training Guide.
Red line versions of the draft KPMG reports, so that you can see we have only removed information thought to
be irrelevant or commercially sensitive.
ANAM PWN
I have also attached advice from HSF which is forwarded on, on a confidential basis, and sets out the risk of disclosing
the KPMG report and providing a cover note. Disclosure of the KPMG reports will not satisfy everyone and we will
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almost certainly have to field further questions on the subject but on balance, my view is that it is better to disclose the
reports to the inquiry and that by doing so:
Post Office will demonstrate a genuine willingness to engage with, and aid the Inquiry.
It will allow Nick Read to demonstrate that he has discharged the commitment he gave to Lord Arbuthnot in
February to better understand how Post Office operates its suspense accounts.
e It will enable Post Office to get ahead of the curve and relieve the business from having to service further
questions on this topic in the future, which otherwise seems likely.
It will demonstrate to Sir Wyn that Post Office has not, as has been alleged, been improperly making a profit
from the operation of its suspense accounts — as has been an assertion made regularly since 2012 (ish)
Next Steps:
e If you are able to feedback any comments you have asap, I would be grateful.
@ The KPMG review into the current operation of suspense accounts triggers disclosure under criminal jurisdiction.
As such and so that it can be disclosed in tranche 3b, I need to share the final report (and letters referred to
below) by COB Wednesday (9 December).
¢ KPMG requires that we obtain their consent prior to onwards disclosure of these reports (to both the Inquiry in
full and via the PCDE in redacted form). POL needs to:
I Sign a letter from KPMG (one for each report — which will require CAFs) in respect of its own liability in
order to give consent to disclose; and then
I Disclose the letter under cover of a ‘Transmittal Letter’ from POL to the third party (doesn’t need a CAF,
just to be signed by someone in POL).
These are in draft and progressing — this is included here just so that I don’t forget.
Thank you for taking the time to review the response, it is much appreciated.
Mark
Mark Underwood
Legal, Compliance & Governance Operations Director
Ground Floor
20 Finsbury Street
London EC2Y 9AQ
Mobile numb
On leave: 9 Oct & w/c 26 Oct 2020
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